Overwhelmed by the looming prospect of creating a succession plan? Follow these guidelines from a shop owner who did it right—both as buyer and a seller.
The outdoor retail industry is at a crossroads. Independent shops across the country have aging patriarchs and matriarchs at their head—with no succession plan in place. In order to succeed beyond the next five or ten years, all of these retailers need to create and institute a succession plan, but choosing a successor can seem an overwhelming feat indeed.
If there’s no familial descendant ready to take on the role (usually there’s not), most owners have two choices: internal or external buyout. When making such a decision, tapping the know-how of someone with a similar experience could be helpful—but who could possibly have experienced both sides and can speak to both options?
Jonathan Scott of Rock/Creek.
Within just 16 months, Scott transitioned from employee, to owner, to seller. It’s a story, however, that began 23 years ago; that’s when Scott started at Rock/Creek. As he transitioned between roles—sales floor to buying to operational, management and IT and HR—Scott began to realize that Rock/Creek was much more than a company. “It’s not just an outdoor store, it’s a community hub,” he says. Early on, he envisioned the opportunities and impact such a unique marketplace could have on the industry.
So when former owner Dawson Wheeler announced he and co-owner Marvin Webb planned to sell the business to Scott and Chad Wykle while accepting a Grassroots Outdoor Alliance award, despite his surprise, Scott immediately got down to the business of buying a business.
